You have submitted your initial analysis to the sales team at D.M. Pan Real Estate Company. You will continue your analysis of the provided Real Estate Data spreadsheet using your selected region to complete your analysis. You may refer back to the initial report you developed in the Module Two Assignment Template to continue the work. This document and the National Statistics and Graphs spreadsheet will support your work on the assignment.

Note: In the report you prepare for the sales team, the dependent, or response, variable (y) should be the listing price and the independent, or predictor, variable (x) should be the square feet.

Using the Module Three Assignment Template, specifically address the following:

• Regression Equation: Provide the regression equation for the line of best fit using the scatterplot from the Module Two assignment.
• Determine r: Determine r and what it means. (What is the relationship between the variables?)
  • Determine the strength of the correlation (weak, moderate, or strong).
  • Discuss how you determine the direction of the association between the two variables.
    • Is there a positive or negative association?
    • What do you see as the direction of the correlation?
• Examine the Slope and Intercepts: Examine the slopeb1{"version":"1.1","math":"$b_1$"} and intercept b0{"version":"1.1","math":"$b_0$"}.
  • Draw conclusions from the slope and intercept in the context of this problem.
    • Does the intercept make sense based on your observation of the line of best fit?
  • Determine the value of the land only. Note: You can assume, when the square footage of the house is zero, that the price is the value of just the land. This happens when x=0, which is the y-intercept. Does this value make sense in context?
• Determine the R-squared Coefficient: Determine the R-squared value.
  • Discuss what R-squared means in the context of this analysis.
• Conclusions: Reflect on the Relationship: Reflect on the relationship between square feet and sales price by answering the following questions:
  • Is the square footage for homes in your selected region different than for homes overall in the United States?
  • For every 100 square feet, how much does the price go up (i.e., can you use slope to help identify price changes)?
  • What square footage range would the graph be best used for?
    

Region State County listing price $'s per square foot square feet East North Central il dekalb 347,500 $97 3,574 0.482482 East North Central oh wayne 256,700 $129 1,986 0.349674 East North Central oh pickaway 265,700 $143 1,853 0.915247 East North Central oh greene 581,800 $113 5, 146 0.084022 East North Central mi shiawassee 192,400 $129 1,494 0.345553 East North Central in madison 229, 100 $187 1,224 0.874273 East North Central wi manitowoc 181,400 $140 1,294 0.636274 East North Central in howard 304,300 $152 1,996 0.428493 East North Central il madison 254,500 $156 1,628 0.459988 East North Central il vermilion 254,500 $156 1,632 0.326457 East North Central in marion 323,300 $95 3,408 0.120861 East North Central in lake 470,600 $109 4,316 0.828438 East North Central oh scioto 204,200 $131 1,562 0.760423 East North Central mi ingham 222,500 $125 1,777 0.760877 East North Central in henry 235,000 $148 1,588 0.489688 East North Central oh cuyahoga 265, 100 $136 1,947 0. 151024 East North Central il winnebago 236,700 $140 1,692 0.549534 East North Central oh marion 149,700 $1 16 1,296 0.939514 East North Central oh muskingum 188,300 $94 1,999 0.422032 East North Central oh hancock 380,300 $94 4,028 0.218561 East North Central in vanderburgh 214, 100 $134 1,596 0.959347 East North Central mi isabella 163,000 $125 1,307 0.717554 East North Central il henry 257,700 $123 2,087 0.374139 East North Central in delaware 221,600 $134 1,651 0.652486 East North Central oh washington 324,400 $156 2,081 0.812501 East North Central oh seneca 211,900 $168 1,263 0.992269 East North Central oh richland 248,900 $132 1,880 0.45392 East North Central in elkhart 202,300 $182 1, 113 0.0214 East North Central il stephenson 235,600 $140 1,682 0.980118 East North Central in wayne 203,800 $141 1,441 0.174717 Mean 260,896.67 Mean 2,051.37 Median 236, 150.00 Median 1,687.00 Standard Deviation 90,491.2474 Standard Deviation 999. 1197